For the year ending December 31, 2012, Sanjay Company accumulates the following data for the plastics division, which it operates as an investment centre contribution margin $700,000 budgeted, $715,000 actual controllable fixed costs $300,000 budgeted, $309,000 actual Average operating assets for t...

SANJAY COMPANY Plastics Division Responsibility Report For the Year Ended ...

For the year ending December 31, 2012, Sanjay Company accumulates the following data for the plastics division,

Question:

For the year ending December 31, 2012, Sanjay Company accumulates the following data for the plastics division, which it operates as an investment centre: -$700,000 budgeted, $715,000 actual; controllable fixed costs-$300,000 budgeted, $309,000 actual. Average operating assets for the year were $2 million. Prepare a responsibility report for the plastics division, beginning with the
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...